The economic landscape of San Diego has shown remarkable resilience in the face of macroeconomic adversity, with the region experiencing growth in a number of employment sectors. Between May 2022 and May 2023, non-farm employment surged by 42,500 jobs, reflecting a year-over-year growth rate of 2.8 percent. Since May 2020, the region has added a total of 311,300 jobs, which has played a pivotal role in rejuvenating the local economy, indicating a promising trajectory for the region’s overall prosperity, according to a recent San Diego County Medical Office Market Report by Cushman & Wakefield.
A closer examination of the employment landscape reveals that the private education and health services sector emerged as a significant driver of job gains, contributing 13,800 jobs and delivering a year-over-year growth rate of 6.1 percent. This surge in employment underscores the importance of the healthcare industry in the region, which has showcased its resilience even during economic headwinds. The leisure and hospitality sector also made noteworthy strides, adding 12,300 jobs with a growth rate of 6.3 percent year-over-year. Additionally, the professional and business sector experienced growth by contributing 3,400 jobs, representing a growth rate of 1.2 percent. These numbers collectively signify a multifaceted economic expansion across various sectors, indicating a well-rounded recovery.
While the increase in job creation has undoubtedly contributed to San Diego’s economic recovery, it’s worth noting that the monthly unemployment rate experienced a modest uptick from 2.9 percent in the previous year to 3.5 percent. This increase is in line with the quarterly average of 3.5 percent, suggesting a stabilization of the employment market. However, the region has successfully recuperated all 249,300 non-farm jobs that were lost during the pandemic’s onset in March to April 2020, attaining pre-pandemic employment levels as of May 2023.
San Diego’s economic outlook remains optimistic, with projections indicating that all employment sectors are poised for continued growth. The collective growth rate for 2023 is projected at 2.5 percent, followed by a growth rate of 0.8 percent in 2024. These projected rates outpace the 5-year historical average of 1.2 percent, highlighting the region’s strong potential for sustainable economic expansion. This anticipated growth underscores the resilience and adaptability of San Diego’s business environment, positioning it as an attractive destination for investors and job seekers alike.
